Mandatory Disclosure guidelines published

Mandatory Disclosure rules impact on certain tax transactions relating to Income Tax, Corporation Tax, Capital Gains Tax, the Universal Social Charge, Value Added Tax, Capital Acquisitions Tax, Stamp Duties and Excise Duties.

Section 88 Finance Act 2014 introduced a number of amendments to the Mandatory Disclosure regime, which are effective for any transaction which is commenced after 23 October 2014. Following on from a public consultation (refer to e-Brief 99/14) Revenue has now published its amended Guidance Notes on the mandatory disclosure regime.

The main changes made to the guidance notes, reflecting submissions received, are:

• clarification on the 'main benefit' test (paragraph 2.2.6)
• clarification on where the obligation to disclose rests where there is no promoter (paragraph 3.8.2)
• clarification around the new discretionary trust hallmark (paragraph 4.3.10)
• clarification on when a taxpayer is required to provide certain information in lieu of a transaction number (paragraph 5.3.1)
• clarifications around obligations to disclose and provide transaction numbers (paragraph 8.6 and 8.7)
• inclusion of additional examples, in Appendix 1, of what Revenue consider day-to-day tax planning
• inclusion of a number of additional items, in Appendix 2, which are not disclosable under certain specified descriptions.

Practitioners and taxpayers are reminded that, in relation to transactions that are commenced after 23 October, Revenue will treat any disclosures or information received by 31 January 2015 as having been received in a timely manner with the result that no penalties for late disclosure will apply.

28 January 2015